Electronic Arts Tops Estimates on Mobile Football, SoccerRob Golum
Electronic Arts Inc., producer of the Madden and FIFA video games, posted second-quarter sales and profit that topped analysts’ estimates on soaring mobile use of its sports titles. The shares jumped after the company raised its full-year outlook.
Profit excluding items grew to 73 cents a share, topping the 53-cent average of 22 analysts’ estimates compiled by Bloomberg. Revenue, also adjusted, was up 17 percent to $1.22 billion in the period ended Sept. 30, the software maker said yesterday in a statement. Projections were for $1.15 billion.
Electronic Arts is benefiting from the growing popularity of games played on smartphones and tablets, along with the new generation of game consoles from Sony Corp. and Microsoft Corp. Active users of mobile sports titles more than tripled from a year earlier, led by Madden NFL Mobile and FIFA 15 Ultimate Team Mobile, the company said.
“Mobile is very compelling, but it’s not cannibalizing, Chief Financial Officer Blake Jorgensen said in an interview. ‘‘People love to play games in many different modalities.’’
Electronic Arts rose 3.8 percent to $38.91 at the close in New York. The stock has risen 70 percent this year.
For the year, the company forecasts revenue of about $4.18 billion on an adjusted basis, up about $75 million from a previous projection, and profit of $2.05 a share. Analysts predict $4.16 billion in sales and $1.93 a share in profit.
This quarter, Electronic Arts sees profit of 90 cents a share on an adjusted basis, above the 84-cent average of estimates. Sales will be about $1.28 billion, said the company, based in Redwood City, California, compared with estimates of $1.29 billion.
Battlefield Hardline, a late 2014 release that had to be delayed for more work, will come out on March 17 in the U.S. and two days later in Europe, the company said.
Net income for the second quarter, including costs like stock-based compensation and changes in deferred revenue, totaled $3 million, or 1 cent a share, compared with a year earlier loss of $273 million, or a loss of 89 cents. Sales rose 42 percent to $990 million on that basis.
Total mobile users averaged more than 155 million during the quarter, the company said, compared with more than 140 million in the previous three months.
The company releases the new Dragon Age for game consoles on Nov. 18, according to the company website. Jorgensen called the title ‘‘massive, beautiful and extremely immersive.
‘‘People will start to see the power of the new consoles,’’ he said.